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Flashcards in Chapter 5 Deck (16)
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1
Q

Essentials of a binding contract

A
  1. Offer
  2. Acceptance
  3. Consideration
  4. Intention to create legal relations
2
Q

bilateral offer

A

promise for promise

ex. sale of goods

3
Q

unilateral offer

A

promise for act
made to the world at large
ex. reward for lost property

4
Q

Arbitration clauses

A

states that in the case of a disagreement this clause allows for later variations to take into account future needs (availability or price)

  • lack of clarity may be resolved= binding offer
5
Q

invitation to treat

A

invitation to make offers; advertisements

6
Q

tender

A

competitive offer (bid)

7
Q

subject to contract

A

not an acceptance; prior to a contract being drawn up

8
Q

burden of truth/proof

A

responsibility of proving something

9
Q

balance of probabilities

A

comparing the two stores (judge decides who is tell the truth)

10
Q

quotation

A

request for information or response to such a request

-not a valid offer

11
Q

Communication: electronic

A

valid when recipient receives message

12
Q

Communication: post

A

valid once sent

13
Q

Revocation

A
  • offeree has to know (not valid until he knows)

- at any time before acceptance

14
Q

Ways to terminate offer

A
  1. Death
  2. Refused and counter offer
  3. Time limit
  4. Revocation
15
Q

gratuitous promise

A

give something for nothing (not contractual)

16
Q

option

A

a promise to allow an offeree time to consider doing business on the terms of a pre-existing offer (payment to be help open)